Hollywood is here. Illustration: Liu Rui
Movie insiders have suggested that Chinese filmmakers must improve the quality of their films to compete with their American rivals as more Hollywood blockbusters will air in the country under a newly-reached accord.
Beijing will permit 14 US premium format films to air, such as IMAX or 3D, which will be exempt from its annual quota of importing 20 foreign movies, as will the 2D versions of the films, a US trade official told reporters on Friday.
The Chinese box office revenue share of US studios will also increase from around 13.5 percent to 17.5 percent, the official said.
The pact will be reviewed after five years to ensure that it is working as envisioned.
The agreement was reached Friday when Vice President Xi Jinping ended his US trip.
Xi's US counterpart, Joe Biden, was quoted by the White House as saying that the deal makes it "easier than ever before for US studios and independent filmmakers to reach the fast-growing Chinese audience, supporting thousands of American jobs in and around the film industry."
Chinese film authorities have not responded to the news.
In 2007, the US lodged an appeal to the WTO, accusing China of not providing enough access for imports of publications and audio-visual products.
The WTO's top arbitration body ruled in 2009 that Chinese regulations failed to comply with world trade rules although Beijing strongly opposed the ruling.
The Xinhua News Agency said Saturday that "China and the US have agreed on a memorandum of undertaking regarding the resolution of issues relating to films in the WTO'S China-audiovisual case."
After the news broke, many Internet users expressed their excitement at being able to view more Hollywood movies, while some considered this as both an opportunity and challenge to China's own film industry.
Yuan Xin, vice president of Stella Mega International Group, a leading theater operator in China, told the Global Times that more foreign movies mean wider options for audiences, as well as increased income for theaters.
"The box office of domestic movies will definitely be impacted, which means Chinese movie makers have to work their butts off to improve their competitiveness," Yuan said, adding that many Chinese producers treat movies as avenues for profit, disregarding their artistic value.
Yuan's words were echoed by Su Mu, a professor at the Beijing Film Academy, who described allowing more US movies in as putting wolves in among the sheep.
"More and more (Chinese) movies are not focusing on the story and plot but relying on big stars or promotion stunts to 'deceive' audience into theaters. More US movies may force domestic producers to take a correct attitude toward their works and learn from others," Su noted.
Statistics released by the State Administration of Radio, Film and Television in January showed that among the total 2011 Chinese box office value of over 13.1 billion yuan ($2.08 billion), over 6.08 billion yuan was earned by foreign movies.
Gao Qunshu, a Chinese director whose works include Tokyo Trial, called the move a stroke of luck for China's movie industry.
"Those to be destroyed (in the upcoming competition) are filmmakers who rely on luck, the so-called big stars, past achievements and people who can manipulate the market," Gao wrote on his Sina microblog.
However, Yuan noted that not all Hollywood movies cater to Chinese filmgoers' tastes due to cultural differences, citing a number of market failures by foreign films in China.
China's film market has been undergoing rapid expansion. A total of 803 new theaters were established across the nation in 2011, according to the Guangming Daily.
It is predicted that at least 300 more theaters will open their doors this year.
"By promoting the growth of a legitimate marketplace for US movies in China, this agreement will also complement efforts to fight movie piracy and help protect the jobs of workers in both countries, whose livelihoods are dependent on a healthy entertainment industry," US Motion Picture Association boss Chris Dodd told AFP.
Alongside the movie pact, the two nations also reached a number of business deals during Xi's visit in Los Angeles on Friday, including Dreamworks Animation's venture to open a studio in Shanghai, and Chinese telecommunications giant Huawei's pledge to award $6 billion in contracts over three years to Qualcomm, Broadcom and Avago.
Agencies contributed to this story
Global Times Editorial
The Chinese movie industry is growing stronger. A few home-made epics can beat their Hollywood competitors at the box-office.